Newsom

SACRAMENTO — Gov. Gavin Newsom and Democratic leaders of the California Legislature plan to approve a proposed constitutional amendment this week that would ask voters to give them more flexibility over state spending and allow them to save money that could otherwise go back to taxpayers.

The proposal seeks to exempt deposits into state savings accounts from a spending limit that voters adopted through a series of ballot measures dating back to the late 1970s and to increase the share of tax revenue that can be put into the rainy day fund.

“Putting money aside to protect ourselves from future uncertainties isn’t just good government; it’s common sense,” Newsom said in a statement. “California is strong and resilient, but we’re not immune to economic headwinds. At a time when our essential services are under pressure, we have a responsibility to safeguard the programs and investments that Californians rely on.”

Assembly Constitutional Amendment 20, which Democrats are calling the “Save for California’s Future Act,” could receive push back from taxpayer advocates.

Under an existing state appropriations restraint, also known as the Gann limit, lawmakers cannot spend more than an amount determined by a formula that takes into consideration annual tax proceeds and changes to the population and cost of living. Tax revenue above the limit must be divided between schools and refunds to taxpayers.

With few exceptions, the limit applies to most appropriations of tax revenue, including money that lawmakers tuck away into the rainy day fund and other reserves. California voters have also capped the amount of money lawmakers can set aside in the rainy day fund to 10% of general fund proceeds in a given year.

Since taking office, Newsom has argued that it doesn’t make sense for savings to count as spending under state law.

State budget revenue is subject to dramatic swings from year to year based on stock market activity. The law, Newsom has said, prevents the state from saving more money in good years to stave off cuts to programs in bad years.

The proposed changes would exempt deposits into the rainy day fund and a short term reserve, called the “Projected Surplus Temporary Holding Account,” from the state appropriations limit. The cap on the rainy day fund would grow from 10% of general fund tax revenue to 20%.

“Californians live by a simple, bipartisan truth: set money aside when times are good so you’re ready when they’re not,” Assembly Speaker Robert Rivas (D-Hollister) said in a statement. “The Save For California’s Future Act is what responsible leadership looks like — and future taxpayers will thank us for it.”

The measure could incentivize Democrats to save more money because funds tucked away in the rainy day fund would no longer be considered expenditures counted toward the spending limit. By allowing lawmakers to set aside more money that is not subjected to state spending limits, it could also allow them to hold onto money that would be returned to taxpayers under current law.

The measure is slated for a vote Thursday. If approved by two-thirds of lawmakers, voters will consider the proposal on the November ballot.

The U.S. Department of Justice — make that the U.S. Department of “Justice” — is sniffing around Gavin Newsom and his wife, Jennifer Siebel Newsom.

This is widely seen as a throw-me-in-the-briar-patch gift from President Trump, coming as California’s governor edges ever closer toward a 2028 run for the White House. The presumed effort to cut down a political foe could instead boost Newsom’s chances of winning the Democratic nomination, or so it’s being suggested.

After all, look at how Trump’s verbal bludgeoning elevated former Rep. Adam Schiff. The House has typically been a dead end for lawmakers seeking statewide office in California. Today, the former Burbank congressman and Trump tormentor is a United States senator.

In truth, however, it’s far too early to say how the investigation of Newsom and his wife plays out politically, not least because it’s unclear whether there’s merit to the probe or if it’s merely a fruitless search-and-destroy mission by Trump’s Department of Retribution, Vengeance and Settling Old Scores

Beyond that, the first ballots of the 2028 campaign won’t be cast for roughly a year and a half. The Democratic National Convention, where the party will install its nominee, doesn’t begin for another 778 days.

Your friendly political columnist won’t resort to that hoariest of cliches about such-and-such duration being a lifetime in politics. But for some perspective, let’s go back 778 days.

President Joe Biden was running for reelection and about to challenge Trump to a pair of early debates. Trump was sequestered in a New York City courtroom being prosecuted on 34 felony counts.

A lot happened in the weeks and months that followed, including Biden’s self-immolation on the debate stage and Trump’s criminal conviction. A lot more will happen in the weeks and months to come. There’s no telling what. But it’s safe to say the fight for the 2028 Democratic presidential nomination will not be decided by anything that’s taken place in June 2026.

Still, Newsom is once again sunning himself in the national spotlight and for that he has Trump to thank.

With his exquisitely tuned political antennae, the governor jumped out front of the president by announcing last week the feds were targeting him and his wife. (Naturally, Newsom’s revelation was accompanied by a rage-bait email — subject line: “Because I am thinking of running for president” — that denounced the “political witch hunt” and asked for money.)

“After calling for my arrest last year, Donald Trump directed his Department of Justice to investigate me,” Newsom said in a 4 ½-minute, direct-to-camera video that framed the investigation before prosecutors had the chance. “And just in the last week, I’ve learned his campaign has reached my own home: To get me, he’s coming after my wife, Jen.”

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Newsom and his wife both adamantly denied any wrongdoing and, of course, they must be presumed innocent until and unless proven otherwise.

But there was something a bit disingenuous about the governor’s chivalrous defense. Siebel Newsom, a documentary filmmaker who calls herself California’s “First Partner,” is no mere housewife baking cookies and holding teas, in the famous words of Hillary Rodham Clinton. (Hold the outrage, folks, this is not some retrograde criticism of career-seeking women.)

Among her many public-facing activities, Siebel Newsom heads The Representation Project, a nonprofit focused on challenging gender stereotypes. The organization has faced criticism for accepting donations from companies that lobby the governor, so it’s not unreasonable to ask whether those interests have improperly sought to influence Newsom by giving money to Siebel Newsom’s causes.

My Times colleagues reported that an investigation related to Siebel Newsom has been underway for about a year and was launched by federal prosecutors in Sacramento based on whistle-blower information provided in California. It was not, their source said, the result of a directive out of Washington.

A second probe, they reported, is related to Newsom’s ex-chief of staff, Dana Williamson, who pleaded guilty last month to bank and wire fraud involving a scheme to steal campaign funds from Xavier Becerra, the Democratic candidate for governor.

The problem with all this federal sleuthing is the utter lack of credibility attached to Trump’s Justice Department. Which is what happens when you turn the department into an arm of Trump’s malevolent fiefdom and deploy its prosecutors as henchmen targeting the president’s perceived enemies.

“This is a huge problem,” Randall Eliason, former chief of the Public Corruption Section of the U.S. Attorney’s Office in Washington, told Politico. “In any political corruption prosecution, the defense almost always claims it is a ‘political witch hunt,’ that prosecutors are targeting him or her for some political reason.

“The best defense to that has always been [the Justice Department’s] tradition of independence from politics and long track record of pursuing corruption cases based only on the facts and law, without regard to political considerations,” Eliason said. “The Trump administration has abandoned that independence without even trying to hide it.”

The probe of Newsom and his wife presents more questions than answers.

It’s grody, but not criminal on its face, for lobbyists to curry favor with the governor by throwing cash at his wife’s endeavors — if, in fact, that’s been the case. Special interests spending money to gain access and influence is about as common in Sacramento and other capitals as statues, domed buildings and manicured lawns.

So why then are the feds investigating Newsom? Why now? Is there any fire, or is it all a lot of smoke?

Perhaps most important, where can you turn to get an impartial answer?

SACRAMENTO — Gov. Gavin Newsom vetoed legislation to require proposed data centers to provide estimates of their water usage last year, saying he was “reluctant to impose rigid reporting requirements” without understanding the impact on businesses and consumers.

Opposition to the mammoth tech hubs and their massive thirst of water, power and land has only escalated throughout the state and nation ever since. In just a matter of months, Newsom again could find himself in the political crosshairs.

Several bills to regulate the facilities and increase public transparency on their impacts are progressing in the California Legislature, which could create a conundrum for a governor who has long aligned with the tech industry but also paints himself as an environmental and social justice advocate.

“I think the governor is in a fragile position,” said Megan Mullin, a public policy professor at UCLA. “Tech has been a long backer of his, but at the same time there is this growing national outcry against data centers.”

Data centers have existed for decades but are rapidly expanding due to the worldwide boom in artificial intelligence. The newer centers built to power AI are far larger than their original counterparts and require immense amounts of water and energy.

The facilities also contribute to fossil fuel emissions, with Cornell University researchers estimating last year that AI growth could add 24 to 44 million metric tons of carbon dioxide to the atmosphere annually by 2030. Fossil fuel emissions are drivers of climate change and linked to a range of health conditions, including asthma, various cancers and birth defects.

Environmental Protection Agency Administrator Lee Zeldin announced last week that the Trump administration will not set national environmental requirements or recommendations for the data center industry, leaving it to state lawmakers to determine best policies.

Thad Kousser, a political science professor at UC San Diego, said the nation will likely look to the Golden State for guidance.

“California’s laws will create a national model,” he said. “We’re the home of Silicon Valley and we’re just a massive state — the way we regulate data centers will set the tone.”

The political landscape around data centers has since changed since Newsom’s veto in October, said Dan Schnur, a political science professor who teaches at UC Berkeley and USC.

“No one should assume he will automatically act in the same way,” Schnur said. “Newsom is an incredibly savvy politician so he is clearly aware that voters are a lot more upset or concerned about data centers than they were a year ago.”

A Gallup poll released last month found 7 out of 10 Americans oppose data centers being built in their area.

The facilities can create thousands of jobs for construction workers and generate significant revenue for local governments due to sales and property taxes. The artificial intelligence they power is also — at least temporarily — boosting the stock market, leading to more tax dollars for California.

But residents who live near hyperscale centers have expressed outrage over a range of issues, including health impacts, spiking utility bills, constant noise, dropping water pressure and concerns about potentially losing their land through eminent domain. Meanwhile, community meetings about data centers are growing contentious, with police arresting a farmer in Oklahoma, three women in Wisconsin and a man in California.

Earlier this month, residents of Monterey Park voted overwhelmingly to ban data centers, making the San Gabriel Valley city the first in the nation to do so by public vote.

“Six months ago, politicians of both parties were falling all over each other to bring data centers into their states,” Schnur said. “Now that the public backlash has erupted, they are working just as hard to distance themselves from these projects.”

With Newsom eyeing a presidential bid in 2028, he might be reluctant to brand himself as a defender of an increasingly unpopular industry.

But Schnur said the governor likely also has concerns about angering one of his biggest backers.

“The tech community is a critical part of Newsom’s donor base, so he has to keep fundraising in mind when he makes these decisions,” Schnur said.

A spokesperson for the governor’s office declined to comment on data centers or pending legislation.

Newsom, during an interview at a Center for American Progress conference in May, said the concern that data centers may drive up electricity costs for Californians is a “legit issue,” but not the main one.

“The tech genie is not going to go back in the bottle,” Newsom said. “Just saying that you should not or cannot build a data center is not going to slow this technology down. What can be, will be. Nature of technology. And so we just have to steer it and not make the mistakes we made with social media.”

Among the measures in the Legislature are two bills from Sen. Steve Padilla (D-San Diego). SB 886 would create a corporate tariff to cover the cost of data center-related grid upgrades. SB 887 would ban data centers from receiving ministerial exemptions from the California Environmental Quality Act, known as CEQA.

Neither bill picked up support from Republicans, but both cleared the Senate and were recently referred to the Assembly Utilities and Energy Committee.

Padilla represents Imperial County, a farming community near the border of Mexico where plans for a 950,000–square–foot data center face fierce opposition from residents. The county exempted the proposal from CEQA, which requires projects to undergo an extensive state environmental review before breaking ground.

The city of Imperial sued the county earlier this year, arguing the project should not have received an exemption. The San Diego Chapter of the Sierra Club joined the lawsuit last month. The county board of supervisors last week approved a 45-day moratorium on all new data centers to allow the county to evaluate proposed data center development.

Two other data center-related bills recently passed the Assembly, each picking up support from a few Republicans. They now await action from the Senate.

AB 2619 from Assemblymember Diane Papan (D-San Mateo) would require data center owners to provide an estimate under penalty of perjury about expected water usage and sources before applying for a business license. AB 1577 from Assemblymember Rebecca Bauer-Kahan (D-Orinda) would require data center owners to submit monthly information to a state commission about water and fuel consumption.

Ben Green, an assistant public policy professor at the University of Michigan who is researching how data centers impact communities, said reporting requirements are a “bare minimum” type of regulation, making it especially noteworthy that Newsom vetoed a similar measure last year.

For comparison, several states are weighing more restrictive bills — New York recently sent legislation to the governor’s desk that would enact a one-year moratorium.

“It seems that there was a ton of lobbying pressure that he was getting,” Green said. “The tech industry doesn’t want to have any restrictions.”

Green said data centers could be a hot topic in upcoming elections, as Americans on both sides of the aisle are expressing valid concerns.

“There’s not an easy fix for getting the public on board with data centers because their critiques are grounded in reality,” he said. “This is not just some sort of reactionary NIMBY-ism or pearl clutching.”

After Gov. Gavin Newsom announced this week that the U.S. Department of Justice may be investigating his wife, Jennifer Siebel Newsom, media and pundits pounced on millions in charity payments he has solicited for nonprofits, including ones she is involved in.

Those donations, known as “behested payments,” aren’t illegal in California, but, long before Newsom started asking for them, many have found them unsavory — with good cause. A behest, after all, is by definition a command or at least a strong suggestion.

Anytime a politician is commanding money, regardless of the purpose, there is at least the appearance that the giver — Meta, Google, Blue Shield for example — may expect something in return.

It may seem absurd that the Trump administration could be investigating Newsom for questionable ethics, when Trump has hawked everything from crypto-coins to sneakers from the Oval Office. But the problem Newsom now faces is that behested payments are actually skeevy, and legal or not, they make an excellent target for pummeling the presidential contender. Especially because some of the charities are tied to his wife.

“The Newsom case has blown it wide open, but this has been an issue for years,” Sean McMorris told me. He’s the transparency, ethics and accountability program manager at Common Cause, a nonpartisan organization that has been raising alarms over behested payments for more than a decade.

McMorris said that while these payments don’t violate any laws, they are “ripe for abuse” because companies and people likely aren’t ponying up cash just to be good citizens. If you or I called up PG&E and asked them to give a few million to our favorite cause, I doubt we’d have much luck, even if it involved kittens, puppies or small children in need.

The entire system, McMorris points out, “doesn’t really work unless you’re shaking down people who you know need things from you as a politician.”

Jerry Brown used behested payments to get millions for charter schools he supported. Lesser luminaries such as mayors (including Antonio Villaraigosa, Eric Garcetti and Karen Bass, just to name the last three in L.A.) have used them for all kinds of stuff from jobs programs to fixing up official residences.

And it’s far from a Democratic thing. Arnold Schwarzenegger, a Republican, used them to pay for travel and after-school programs. Republican James Gallagher, who recently won a congressional seat, used them to fund computers for schools while he was in the state Legislature. Senate Minority Leader Brian Jones has raised millions, including helping to get $800,000 in donations to fund a replica of a historic ship for the maritime museum in his San Diego district.

Trump himself could be considered king of behested payments, with his corporate-paid ballroom and birthday bash.

Literally, folks, find me a politician with an itty-bitty bit of clout, and I’ll show you a trail of behested payments stretching through their pet projects. For that reason alone, it’s unlikely that California legislators will take any action to curb them, especially now when doing so would appear as a criticism to Newsom and Democrats in general.

And, to be fair, behested payments can do a lot of good. Newsom supercharged behested payments during the pandemic, raising hundreds of millions for programs to get Californians through that social disaster.

For that reason and others, not all experts find them terribly troubling. Jessica Levinson, a Loyola Law School professor with an expertise in election and governance issues, points out that money in politics is nothing new and at least behested payments are (mostly) required to be acknowledged. Anything over $5,000 and the politician has to report it to the California Fair Political Practices Commission, which keeps a public database.

That makes behested payments far more transparent than, say, dark money donations to a mysterious political action committee. And at least the money is going to a good cause, be it historical ships or computers for kids.

“I actually don’t think that they’re the evil mechanism that other people do,” Levinson said. “I mean, my feeling is like, let’s live in reality, right? People are going to want to give as much money to or close to powerful people as possible, and I think that we have a choice between money going to independent expenditure groups or political committees or going to nonprofits.”

So behested payments in and of themselves might not be much of a headache for Newsom. But some of the payments Newsom solicited went to nonprofits Siebel Newsom is involved with, and which have paid her a salary. That proximity is uncomfortable for many of us. There is no distinction for a behest given to a charity with direct ties to the politician, but maybe there should be.

Still, salaries being paid by behested payments also aren’t illegal, and it’s been done before, even by Newsom. Villaraigosa was paid through behested funds for his work as the state “infrastructure czar” back in 2022. Bass considered paying former L.A. Police Commissioner Steve Soboroff through behested-funded nonprofits for his work after the recent fires before public scrutiny pushed him to forgo the funds.

None of that is to say the Newsoms are off the hook in a federal investigation. Newsom’s office said that along with the FBI, agents from the IRS have been knocking on doors and asking questions. All of us — probably the Newsoms included — will just have to wait to see if the fine-tooth combs of the feds pick up any dirt.

If there is any lesson to be learned at this point, it’s about ambition and hubris. Behested payments are easy money for California politicians and business as usual — everyone does it. But maybe they shouldn’t. It’s not black or white.

Newsom is learning quickly what it means to have a powerful enemy like Trump, one who has shown he will use the full power of the American government for his own purposes. One who can tip the scales and slide white to gray and gray to felony.

Federal investigators do not like to come up empty-handed, and the wink-wink nature of behested payments creates just that kind of ambiguity that provides reasonable cause for investigation — a self-inflicted vulnerability that surely has every California politician nervous.

California’s political watchdog commission on Thursday finalized a $31,500 fine against Gov. Gavin Newsom, alleging that the Democratic leader failed to report three dozen behested payments totaling $5.5 million mostly to support wildfire recovery by the deadline under state law.

The Political Reform Act requires elected officials to disclose payments of $5,000 or more that they solicit or direct others to give to a charitable, legislative or governmental purpose within 30 days.

The California Fair Political Practices Commission said 34 of the violations were for failing to report on time that Newsom and his staff directed outreach from companies and foundations that wanted to help after the Los Angeles wildfires to the California Fire Foundation. The nonprofit was started in 1987 by the California Professional Firefighters to support the families of fallen firefighters and communities impacted by fire.

The donations include $1 million from the Chuck Lorre Foundation and $500,000 apiece from Lockheed Martin, the Anthem Blue Cross Foundation and BlackRock, among others gifts.

The governor also failed in 2024 to report on time two behested payments, totaling $100,000 from the Schmidt Family Foundation and Schwab Charitable Funds to the Institute for Local Government, a nonprofit within the League of California Cities.

The commission said the governor reported all of the payments “prior to public discovery” or contact from its enforcement division, which it considered a mitigating factor. Newsom also signed the stipulation and agreed to the fine.

Tara Gallegos, a spokesperson for Newsom’s office, said the issue involved late paperwork at a time when the governor’s staff was focused on emergency response and supporting survivors. She also underscored the fact that the reports were filed before he was contact by the FPPC.

Gallegos said the fine is unrelated to an alleged investigation into the governor and his wife by the Department of Justice, which Newsom announced this week.

Newsom alleged Monday that Trump is using the government as political weapon to target him and his wife, Jennifer Siebel Newsom. Newsom announced the investigation after he learned that the FBI and Internal Revenue Service asked his associates questions about nonprofits and businesses related to the couple.

The governor’s office characterized the investigation as a fishing expedition. The Trump administration declined to comment.

A source familiar with the matter, who requested anonymity because they were not authorized to discuss it publicly, said two federal probes have been going on for about a year, and that they originated not from Washington, D.C., but from conversations between whistleblowers and federal prosecutors based in Sacramento. The probes are linked to Newsom’s former chief-of-staff, Dana Williamson, and Siebel Newsom’s taxes, the source said.

The FPPC violations mark the second time Newsom has reported payments late, which increased his penalty for the new infractions. The commission fined Newsom in 2024 for failing to timely report 18 payments totaling $14.4 million.

SACRAMENTO — Gov. Gavin Newsom did something this week that most politicians would only in a nightmare: He announced that the federal government is investigating him and his wife.

The revelation, delivered in a direct-to-camera 4½-minute video set against a backdrop of U.S. and California flags, became a top headline across the country.

In the upside-down politics of the Trump era, that was exactly as intended.

“He seems to be wearing this as a badge of honor because his brand is being the strongest opponent of Donald Trump,” said Thad Kousser, a professor of political science at UC San Diego. “The ability to show that you’re going on offense and that you know how to effectively fight back against this president is part of making your case for office.”

As he eyes a run for president in 2028, an antagonistic relationship with President Trump is Newsom’s political currency.

So when friends and former employees said the FBI and Internal Revenue Service had knocked on their doors and asked about him and his wife, Jennifer Siebel Newsom, last Wednesday, the governor took advantage of the situation to boost his political profile.

“Mr. President, come after me,” Newsom said in the video he posted online. “I’m not going anywhere, and the country is watching.”

Newsom, who is in his final year as California’s governor, has not declared his intent to run for president, though his claim that Trump is targeting him because he’s considering a bid for the White House was an open acknowledgment of his thoughts about the future. Announcing the probe himself — before federal authorities had a chance to describe it on their terms — allowed him to get ahead of and try to discredit any findings as a “personal vendetta” long before potential charges are brought.

Celinda Lake, a Democratic strategist and national pollster, said Newsom publicly defending his wife could also play well with voters.

“He’s positioned himself as the front-runner because he’s the one who’s under attack,” Lake said. “Primary voters love it when he engages Trump, and I think the combination of engaging Trump and then also the sexism of going after your wife is just a real home run for a primary electorate that’s 59% female.”

The video released Monday seemed similar to a speech Newsom delivered after Trump sent federal troops to Los Angeles last summer.

That address, in which he countered Trump’s version of events and challenged the president to come after him instead of women and child immigrants, made Newsom the captain of the Democratic response to the unprecedented deployment and ended his attempt to play the part of respectful statesman and ease political tensions following the 2024 election.

Liberals have since seemed to relish Newsom’s near-constant derision of the president on social media.

But David McCuan, a professor of political science at Sonoma State University, said casting the case as another instance of Trump’s political weaponization ignores questions about the murky timeline and origin of the investigation.

Newsom’s aides point to Trump saying that the governor should be arrested during last summer’s anti-ICE protests as evidence that he personally called for the inquiry. The claim has gained oxygen — and been echoed by other Democratic leaders in the state — while going largely unchallenged by federal officials. The Justice Department has declined to comment, as has the White House.

A source familiar with the matter, who requested anonymity because they were not authorized to discuss it publicly, said two federal probes have been going on for about a year, and that they originated not from Washington, D.C. but from conversations between whistleblowers and federal prosecutors based in Sacramento. The probes are linked to Newsom’s former chief-of-staff, Dana Williamson, and Siebel Newsom’s taxes, the source said.

Newsom’s critics have also noted that federal prosecutors under the Biden administration had pursued questions about his involvement in a state lawsuit against Activision Blizzard Inc., a major video game distributor, before Trump retook office.

“This is something that could lead to other elements that blow up, so there’s a risk,” McCuan said.

Newsom’s aides described the investigation as a fishing expedition, with federal authorities searching for anything they can use against the governor.

They said federal authorities appeared to initially investigate allegations that turned up nothing about the Activision case before refocusing their questions on nonprofits and other entities tied to the couple. Investigators also asked about personal information related to the family’s household, Newsom’s office said.

McCuan said three nonprofits that surround the couple have received millions of dollars from donors and political interests and are not subject to campaign finance limits.

The California Partners Project is a nonprofit that promotes gender equity. The Representation Project is an avenue for Siebel Newsom’s documentary films. The California State Protocol Foundation uses private donations to pay for gubernatorial expenses and was founded under former Republican Gov. Arnold Schwarzenegger.

“It’s a long-running game,” McCuan said. “It’s just the Newsom first couple has perfected it and moved it forward.”

Newsom getting out ahead of prosecutors and framing their probes as nothing but a “witch hunt” — borrowing a phrase often used by Trump during his own previous prosecutions — carries risk.

If prosecutors do turn up evidence of wrongdoing, Newsom’s decision to parade his indignation could backfire.

Publicly challenging Trump also runs the risk that the president could instruct the Justice Department to dig in deeper on an investigation that might have otherwise petered out.

But Lake and others said there’s no placating Trump, who has targeted Newsom and other Democrats.

While traditional politics suggest facing federal charges could sink Newsom’s political ambitions, the rules have been thrown out under Trump.

“You know the last person who got tied up in courts on the campaign trail?” Kousser asked. “That was Donald Trump, and nothing elevated Donald Trump more than doing courthouse press appearances and being seen as the target of an unfair political prosecution.”

Gov. Gavin Newsom on Monday accused the Justice Department of launching — at President Trump’s request — a baseless and politically-motivated investigation into him and his wife, First Partner Jennifer Siebel Newsom.

“After calling for my arrest last year, Donald Trump directed his Department of Justice to investigate me,” Newsom said. “And just in the last week, I’ve learned his campaign has reached my own home: to get me, he’s coming after my wife, Jen.”

Newsom adamantly denied any wrongdoing by him or his wife. The White House referred questions to the Justice Department, which declined to comment.

A source familiar with the matter who requested anonymity because they were not authorized to discuss it publicly told The Times that there are two probes underway, one related to Newsom’s former chief of staff, Dana Williamson, and one related to Siebel Newsom’s taxes.

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The source said both investigations have been ongoing for about a year; were launched by prosecutors in Sacramento based on information provided by whistleblowers and other local sources in California; and were not the result of directives out of Washington or the White House.

Newsom said that in recent days, “federal agents have knocked on the doors of family friends and former employees,” and have been “demanding records,” “digging through years and years of random documents” and “abusing the grand jury process” in a quest to find any kind of wrongdoing by him or his wife.

“Not because they found a crime. Because they are simply trying to find one,” he said.

Newsom did not describe the specific nature of the alleged probe, the line of questioning faced by friends and employees or the types of records taken or reviewed by federal investigators. But he alleged that Trump instigated the probe because Newsom is considering running for president in 2028, and because Trump “hates that I’ve consistently called him out — over and over again — for his lies and deceit.”

“He has turned the levers of government into his own personal power ministries to reward cronies and to try to jail his opponents,” Newsom said.

Newsom cited Justice Department investigations of several other of the president’s political opponents, including Sen. Adam Schiff (D-Calif.), New York Atty. Gen. Letitia James, former FBI director James Comey, former Federal Reserve Chair Jerome Powell and former vice presidential candidate Minnesota Gov. Tim Walz.

“One by one, anyone who has challenged Donald Trump has ended up on his hit list,” he said. “And today, I proudly join that list.”

This article will be updated.

To the surprise of few, President Trump has once again claimed without evidence that Democrats are somehow cheating to win California’s primary elections — writing on social media late Wednesday that federal prosecutors in Los Angeles are investigating the matter.

“The Dumocrats are at it again! They are trying to STEAL THE GOVERNOR OF CALIFORNIA PRIMARY, AND THE MAYOR OF LOS ANGELES, PRIMARY, AWAY FROM TWO GREAT REPUBLICAN CANDIDATES. Here we go with the very late and massive numbers of MAIL IN BALLOTS,” Trump posted to his social media platform Truth Social.

“There’s BIG cheating by the Dumocrats in California. Votes are all tied up. May not be in for weeks. Under investigation by the U.S. Attorney’s Office in Los Angeles,” he wrote in a second post. “Why the vote counting DELAY???”

A spokesperson for the U.S. attorney’s office in Los Angeles — run by Trump loyalist First Assistant U.S. Atty. Bill Essayli — declined to comment Thursday morning on Trump’s claims of an investigation.

California Secretary of State Shirley Weber’s office also did not immediately respond to a request for comment.

Gov. Gavin Newsom’s office responded directly to Trump late Wednesday with its own social media post, writing, “Trump is lying about California again — time to take the phone away from grandpa and put him to sleep.”

On Thursday morning, Newsom’s office wrote that there “is a lot of misinformation floating around about California’s election — including from the President,” and recommended people watch a CNN video about California’s election process. It concluded that delays in vote counting in the state are essentially a result of state leaders deciding that providing voters with “last minute options” for casting ballots is more important than a quick count.

“And yes, for the record: we wish the votes were counted faster, too,” Newsom’s office wrote — a nod to the fact that the issue isn’t new.

In an email, Brandon Richards, Newsom’s deputy director for rapid response, said Trump’s claims are part of “a tinfoil hat level conspiracy theory that has been debunked repeatedly.”

The president’s claims of cheating were predicted before the election by both elections experts and Democratic leaders in California, who dismissed them in advance as more baseless bluster from a president beset by low approval ratings.

A worker puts ballots in a counting machine at the Los Angeles County Ballot Processing Center on Wednesdayin City of Industry.

(Kayla Bartkowski/Los Angeles Times)

Those same experts and Democratic leaders acknowledge that California’s system for counting votes takes a long time and should be quickened, but stress that is not because of anything nefarious. Rather, it is because California allows voters to cast ballots by mail up until election day — and then has to count those ballots, which can number in the millions and are subject to manual signature verification.

Trump has long dismissed such explanations. An election denier since he first entered politics more than a decade ago, Trump has pushed skepticism about elections he and his party lose time and again since — most notably when he claimed, again without evidence, that the 2020 election he lost to Joe Biden was stolen.

Trump even challenged Biden’s victory in court, but his claims were rejected completely because neither he nor his attorneys could produce any evidence substantiating them.

He has combined his tactic of targeting undocumented immigrants for political gain with his skepticism of election integrity by claiming, again without evidence, that such immigrants somehow vote in large numbers, particularly in big blue states such as California, despite experts saying there is no evidence of that.

He has alleged that mail ballots — such as those used by the majority of California voters — are a particularly rich source of voter fraud, despite again having no basis for the claim and it being disputed by experts.

A consistent feature of his election fraud claims is that they arise and target races only when Republicans lose or lose ground.

And, he has tried to use the power of his administration to make sweeping changes to election laws to bar mail ballots and require strict voter ID and proof of citizenship measures, despite the control of elections and their rules being constitutionally given to the states.

Those efforts have prompted a wave of litigation between the Trump administration and California and other blue states, with multiple cases pending in the courts over voter ID, proof of citizenship, mail balloting and the role that the U.S. Postal Service may be allowed to play in processing such ballots.

Trump’s latest remarks came as additional vote counting on Wednesday narrowed the advantage of Republican Steve Hilton over his Democratic challengers in the California governor’s race and closed the gap in the L.A. mayoral race between the MAGA-aligned candidate Spencer Pratt, currently running second, and City Councilmember Nithya Raman, who is running third.

The trend was anticipated. Elections experts warned before vote counting began of the potential for a “red mirage,” wherein earlier voting among Republicans and late voting among Democrats — many of whom were unsure of whom to vote for in the two high-profile races — would create an early illusion of Republican victories despite large volumes of liberal votes from major population centers still to be counted.

It is a trend that has played out repeatedly in past elections, and one that does not come as a surprise to careful elections watchers.

Elections officials in California knew such claims were going to be made, as they’ve been made in the past. Some local elections officials made a point of preparing their staffs for baseless claims of election fraud in advance of this year’s primaries. State officials made repeated efforts to explain the reasons why California elections take time, precisely to undercut claims amid counting that the delays were the result of fraud.

But those claims have come regardless, and not just from Trump.

Above an X post Wednesday suggesting Pratt was losing ground to Raman as more counts came in, Florida Gov. Ron DeSantis wrote, “California keeps dumping votes. Odds are shifting because the vote dumps always seem to go one way. Count until you get the result you want?”

Above another X post Wednesday noting that the California count would take time, Katie Miller, a former Trump administration official and conservative podcaster married to Trump’s top advisor Stephen Miller, wrote, “The Democrats are about to steal the LA mayoral race once again using mail-in voting.”

Both of the posts that DeSantis and Miller were responding to were from Polymarket, a prediction market where people can bet on the outcomes of political races, pop culture events and a slew of other subjects.

Such emerging financial markets, which process billions of dollars in bets, are causing rising concerns about political meddling for profit — including by campaign staffers and other individuals with insider knowledge of polling and other campaign information, or by politicians and their operatives, whose public remarks about politics can swing those markets.

SACRAMENTO — Gov. Gavin Newsom has threatened to tax 100% of the money Californians receive from President Trump’s “anti-weaponization” fund for his political allies.

Trump’s Justice Department had announced last week that it would establish a $1.776-billion fund to compensate allies of the president who claim they have “suffered weaponization and lawfare” under the Biden administration’s Justice Department.

“Anyone from California that receives any of those funds, we want to tax 100% of those proceeds,” the governor told reporters Thursday.

“That’s an action the state of California can take …[and] it’s an action we look forward to taking.”

Just how Newsom would do so remains unclear. He indicated that he would need action from the Democratic-led California Legislature to impose the new tax. If adopted, the measure would likely face legal challenge.

The fund has prompted outrage from Democrats and some Republicans — including Sen. Mitch McConnell (R-Ky.), who said in a statement that the “slush fund,” which would “pay people who assault cops,” was “utterly stupid.”

Newsom’s remarks about Trump’s settlement fund came on Thursday as he signed a bill designed to prevent election interference ahead of Tuesday’s primary.

The bill, Senate Bill 73, restricts law enforcement agencies and officers — including those from federal agencies — from interfering with state and local election officials, such as confiscating ballots, voter rolls or voting machines without a warrant.

The governor said the bill is meant to address “legitimate anxiety” over threats to election integrity after Riverside County Sheriff Chad Bianco’s decision to seize ballots from the county’s voter registrar as part of a fraud probe. Bianco, a long-time Trump supporter, is one of the top Republicans running to succeed Newsom after the end of his second and final term as governor.

Newsom also pointed to ICE and Border Patrol’s decision last November to stage an event near Dodger Stadium, calling it a “show of force designed to intimidate free expression and free speech.”

“That’s why we have to step up and we have to draw the line,” Newsom said. “We have to clarify the rules of engagement… there are fines associated with this, criminal fines and jail time of three years, so that’s a warning [to] the folks out there that think they can do the bidding of the Trump administration.”

Newsom said he expects Trump to interfere with the upcoming election — noting that the president has falsely claimed that he “won” California in the last election.

“Every single thing that Donald Trump is saying only suggests that he will do more, not less, to intimidate and to impact the outcome of this election,” Newsom said. “I absolutely expect the worst again, because we’ve been on the receiving end of it.”

SACRAMENTO — Human rights advocates on Tuesday rallied outside the state Capitol to push back on Gov. Gavin Newsom’s proposed budget plan to reduce state-sponsored healthcare coverage for undocumented immigrants.

“We are here to demand a budget that protects California’s values,” said Kiran Savage-Sangwan, executive director of California Pan-Ethnic Health Network. “We are fighting for a budget that rejects Medi-Cal cuts, seeks new revenues and strengthens our safety net reserve to keep families whole.”

Newsom last week unveiled his revised budget proposal, which would further move away from his previous policy to provide free healthcare coverage to all low-income undocumented immigrants.

His proposal would require monthly premiums for undocumented immigrants receiving coverage from Medi-Cal, the state’s version of the federal Medicaid program. It would also continue to block new adult applications, a cutback imposed last year.

The governor has explained that his original policy was more costly than expected and that difficult decisions must be made as the state could soon face an economic downturn.

Speakers at Tuesday’s rally argued this was unacceptable.

The cuts would force many immigrants to choose between putting food on the table or visiting a doctor, said Savage-Sangwan. She said certain groups, including refugees, older adults and those with disabilities, would be left especially vulnerable.

“These are the kinds of actions we would expect from a federal government that scapegoats immigrants and sends violent ICE forces to terrorize our community,” she said. “Instead, these proposals were made by our own governor in a state that claims to value immigrant communities. We know California is better than this.”

The governor’s office did not respond to a request for comment about the rally.

The event drew about 100 attendees, including Anahi Araiza, a policy researcher with Imperial Valley Equity and Justice. She told The Times that many immigrants in their community struggle to afford medical care and subsequently put off doctor visits.

“They wait until it’s an absolute emergency,” she said. “We’ve heard stories where people delay care and then get diagnosed with Stage 4 cancer.”

The event was supported by several organizations, including California Pan-Ethnic Health Network, Survivors of Torture International, Communities Organized for Relational Power in Action, Health4All Coalition, and Organizing Rooted in Abolition, Liberation and Empowerment.

One man carried a large sign with an image of the Virgin Mary that read “Safety Net For All.” Other marchers donned flowing monarch butterfly wings. The orange-and-black insect became a symbol for the pro-migrant movement years ago because it travels long distances between Mexico and the United States.

Meanwhile, another group gathered outside the Capitol for a news conference to raise awareness about the instability caused by federal healthcare cuts.

Assemblymembers Patrick Ahrens (D-Sunnyvale), Robert Garcia (D-Rancho Cucamonga) and Tina S. McKinnor (D-Hawthorne) joined several doctors and nurses to call for a $500-million state investment into public hospitals.

“Public hospitals are the backbone of our healthcare system,” Ahrens said. “It is estimated that federal cuts will strip over $3 billion a year from the California public hospital system — we cannot balance our budget on the backs of the most vulnerable Californians.”

The Republican-backed “Big Beautiful Bill” signed by President Trump last year shifted federal funding away from safety-net programs and toward tax cuts and immigration enforcement. During a legislative hearing this year, healthcare professionals warned state lawmakers the cuts would harm all patients, including those with private insurance.

SACRAMENTO — Hours before Gov. Gavin Newsom is expected to present his budget plan on Thursday, his office released new projections of a $16.5-billion state revenue windfall over three years and offered a rosy outlook on California’s fiscal position during his final year in office and the year after.

Newsom’s office provided few details about his plan to reduce spending or other adjustments that he would need to propose in combination with the increase in revenue to eliminate projected deficits from 2026-27 through 2027-28.

The unusual early look at his budget proposal comes as Newsom begins to wind down his time at the state Capitol and considers a run for president in 2028.

Two weeks ago, the Legislative Analyst’s Office issued an analysis of state spending that said California could not, in the long term, afford to pay for existing services and the new programs that Newsom and Democratic lawmakers have enacted since he took office in 2019. State spending has outpaced California’s strong revenue growth by about 10%, creating a perennial budget shortfall, defined as a structural deficit.

California’s spending problem threatens to define Newsom’s fiscal legacy and could provide ripe fodder for his critics. If projections of the unexpected tax windfall, which analysts attribute to stock market interest in artificial intelligence companies, bear out, the upswing could mark a lucky break for Newsom.

The governor has largely resisted adopting new across-the-board tax increases or sharply curtailing his expensive policy proposals in order to align state spending with revenue.

His budget proposal includes a call to increase taxes on corporations by limiting state tax credits to no more than $5 million, or 50% of a company’s tax liability, beginning in the tax year 2027. No estimates were offered to explain how much revenue the new cap would bring in to support the state budget.

The preview of his budget has several new spending proposals, including providing $300 million to help low-income Californians keep $0 monthly premiums on healthcare coverage through the Affordable Care Act in response to cuts by the federal government, as well as $100 million to help wildfire victims afford construction loans to rebuild their homes. Two days before Mother’s Day, Newsom also introduced a plan to provide 400 free diapers for every California newborn at select hospitals beginning this summer.

Newsom is expected to present his budget in more detail late Thursday morning in Sacramento.

SACRAMENTO — Gov. Gavin Newsom will propose a new $100-million fund to help wildfire victims afford loans to rebuild their homes under a revised budget plan set to be released Thursday.

The Newsom administration estimates that thousands of victims of the Los Angeles wildfires cannot afford to rebuild, blaming a lack of access to affordable loans and a gap between insurance payouts and the cost to build again.

“We have been on the ground in L.A. since Day One of recovery from these fires, and we aren’t turning our backs now,” Newsom said in a statement. “This community deserves continued support to help them get back on their feet, and rebuild their homes and their lives. “

The new fund would be designed to cover loan-loss guarantee to lenders, in which the state would commit to paying back a percentage of a loan amount if a borrower defaults, in order to lower the risk for lenders and encourage them to award construction loans to borrowers who might not otherwise qualify or only be eligible for loans at high interest rates. The money would also be available for homeowners to buy down their interest rates during the construction period, according to Newsom’s office.

The Eaton and Palisades fires killed 31 people and destroyed over 16,000 structures in January 2025.

A recent survey of the wildfire victims found that homeowners estimate they need more than $600,000 on average above their insurance payouts to rebuild their homes, according to a report from a wildfire recovery nonprofit called the Department of Angels. The gap in Altadena was about $550,000, and between $1.19 million and $1.73 million in Pacific Palisades and Malibu.

Under Newsom, California has also provided mortgage relief to more than a thousand wildfire survivors under CalAssist, a program that provides grants to eligible homeowners to cover mortgage payments for 12 months up to $100,000.

The governor’s new proposal will be included in his funding plan for the upcoming 2026-27 budget year that begins July 1.

State revenue from income tax collection is higher than initially forecast, a boon that is expected to wipe out a projected deficit in the year ahead. Analysts attribute the revenue increase to an artificial intelligence boom in the stock market.

Though likely temporary, the extra funding is expected to give Newsom enough cushion to balance the state budget without major cuts and lower a projected shortfall in 2027-28.

The proposal to create the rebuilding fund requires support from both houses of the California Legislature and would move forward as a trailer bill accompanying the state budget. The funding would be available to disaster survivors, though details on eligibility will be determined during the legislative process.

Vice President JD Vance said Wednesday that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to California over concerns the state is allowing “fraudsters” to drive up costs to taxpayers, including by pushing unnecessary medications on unsuspecting patients.

“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously. But also, you have people who’ve been prescribed medications that they don’t even need,” Vance said. “Sometimes they’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration and medications.”

Vance, standing alongside Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration is also sending letters to all 50 states informing them that if they do not “effectively and aggressively prosecute Medicaid fraud in their states,” they will see federal funding cut off as well.

“We want California to get serious about this fraud,” said Vance, who President Trump named his “fraud czar” last month.

Oz called out what he said was widespread fraud in hospice services and similar in-home care programs nationally — and particularly in the Los Angeles region — and announced a six-month moratorium on new Medicare enrollment for hospices and home health agencies.

“A third of all these programs in the entire country are in Los Angeles. Ask yourself, how is that possible? It’s not,” Oz said. “They’re not that many people dying in Los Angeles. We’re not talking about California, just Los Angeles.”

He said he and others in the administration determined that “at least half of the hospices, in the entire area around Los Angeles, are fraudulent,” and had shut down 800 of them that last year had “charged the federal taxpayer $1.4 billion,” which “will no longer be paid.” That is a major increase from the 450 providers the administration said it had suspended as of last month.

The announcement was the latest attempt by the Trump administration to highlight and rein in fraud in federal healthcare benefits programs, particularly in blue states. The actions were met with immediate push back from California officials.

“We hate fraud. But that’s NOT what this is,” Gov. Gavin Newsom’s office posted on the social media site X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”

Newsom’s office said that the growth of In-Home Supportive Services placements in California was “simple,” and due to California “keeping more people OUT of far more expensive nursing homes!”

Such services cover assistants who help people with daily tasks such as bathing, laundry or cooking; provide needed care such as injections under the direction of a medical professional; and accompany them to and from doctor’s appointments. A 2020 report by the California state auditor found that nearly three-quarters of IHSS caregivers assist a family member.

Newsom’s office wrote IHSS care costs $30,000 a year, while nursing home care costs $137,000 a year. “SAVING TAXPAYERS: $107K per person,” it wrote.

California Atty. Gen. Rob Bonta also criticized the administration’s moves.

“Once again, California appears to be targeted solely for political reasons,” Bonta said. “The Trump administration is planning to defer over $1 billion in Medicaid funding for vital programs that helps seniors and people with disabilities remain safely in their homes.

“My team is carefully reviewing all available information. We have not hesitated to challenge unlawful actions by the Trump administration, and we will continue to act whenever Californians’ rights or access to critical services are threatened,” he said.

Democratic Sen. Alex Padilla also lashed out at the Trump administration.

“The Trump Administration is attacking California over claims that they can’t back up,” Padilla wrote on social media. “Let’s be real, this isn’t about fraud — it’s about punishing a state that didn’t vote for him. Political retribution plain and simple.”

Fraud in California’s hospice industry has been a problem for years.

Authorities in the state promised to crack down on the issue after a Times investigation in late 2020 revealed that unscrupulous providers were billing Medicare for hospice services and equipment for patients who were not actually dying — with the hospice industry in the state exploding in size.

California’s Medicaid program, known as Medi-Cal, is expected to cost about $222 billion for the budget year starting July 1, including both state and federal funding. Roughly 15 million Californians, more than a third of the state, are on Medi-Cal.

Vance, a potential 2028 presidential hopeful, has taken up his work as “fraud czar” with vigor, traveling around the country to drive home the idea that the Trump administration is working diligently to bring down healthcare costs by addressing waste, fraud and abuse that is rampant across the system.

He has said that waste and abuse is particularly prevalent in Democratic-led states such as California, New York and Minnesota.

“We have red states and blue states that go after fraud aggressively, but we also, unfortunately, have some states, mostly blue states, unfortunately, that do not take Medicaid fraud very seriously,” he said Wednesday.

Vance specifically threatened to cut off what he said is billions in federal funding for state-run fraud control units that are meant to prosecute people who abuse the system, but which he said aren’t doing the work. “This is a tool that we want the states to use, but unfortunately, a lot of states aren’t using these tools at all,” he said.

The focus on fraud comes against a backdrop of criticisms that other policy measures pushed by the administration have driven healthcare costs up or made it harder for people to access healthcare — including cuts to Obamacare subsidies and new work requirements in Medicaid, which are expected to strain hospitals around the country and led to millions of people losing healthcare coverage.

Democrats and Republicans have argued over who is to blame for rising healthcare costs, and Vance and Oz have clashed with California leaders before.

In January, Newsom filed a civil rights complaint against Oz after he posted a video accusing Armenian crime groups of carrying out widespread healthcare fraud in Los Angeles. In the video, Oz was shown driving around Van Nuys, saying about $3.5 billion worth of Medicare fraud had been perpetrated by hospice and home care businesses — and “run, quite a bit of it, by the Russian Armenian mafia.”

Newsom called Oz’s claims “baseless and racist.”

The administration previously launched investigations into potential healthcare fraud in at least five states — California, Florida, Maine, Minnesota and New York — and halted some $243 million in Medicaid payments to Minnesota over fraud concerns.

The Centers for Medicare & Medicaid Services has also acknowledged using errant figures to justify a fraud probe in New York, deepening concerns in the administration’s methods for identifying problematic activity.

Vance said the deferral of funds to California and the letters warning other states to get serious is not about political retribution, but a wake up call. He said the Trump administration wants to help states root out fraud and abuse, including with new technologies — but can’t do so if they are not “willing to help themselves” first.

“We don’t want to turn off any money. What we want to do is ensure that people are taking fraud seriously. We want to protect Medicaid, we want to protect Medicare,” Vance said. “But we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.”

The Associated Press contributed to this article.